Testing Methodology

Purpose of Testing Notes

Testing notes on Fourex are intended to help readers understand assumptions and limitations. They are not trade signals and they are not promises of future profitability. A test is useful only when the reader can see what was tested, under which conditions, and what risks remain unknown.

Information We Try to Capture

When available, a useful test profile should identify the trading platform, symbol, timeframe, account currency, spread model, commission, initial balance, date range, modeling quality, risk settings, lot sizing method, broker environment, and version of the tool being tested.

• Platform: MT4, MT5, cTrader, TradingView, or another environment.
• Market setup: symbol, timeframe, spread, commission, slippage, and contract specifications.
• Risk setup: fixed lot, percent risk, martingale, grid, recovery logic, stop loss, and maximum exposure.
• Result context: drawdown, profit factor, trade count, average trade, losing streak, and sensitivity to assumptions.

Backtest Limitations

Backtests can be misleading. Historical data may be incomplete, execution can be idealized, spreads can be too narrow, slippage may be absent, and optimization can fit past data too closely. A clean equity curve can still fail in live trading.

Forward Testing

Forward testing can provide more practical context than a backtest, but it is still limited by sample size, market regime, broker execution, VPS stability, and account settings. A short live or demo test is not enough to prove long-term robustness.

How Readers Should Use Test Content

Use testing notes as a starting point for investigation. Recreate the assumptions, test on your own broker, vary spreads and dates, check drawdown behavior, and avoid risking real capital until you understand how the tool behaves under stress.